CMS Changes Are Going to Lead to Commission Cuts for MAPD

[Nikita]

I sent an email in to the producer helpless desk about it, specifically asking about full true up when enrolled in the middle of the year.

Once the producer helpless desk emails me back, I'll post it. Their email was not 100% clear.

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I'd like to hear from others on this but it seems to me that what UHC is saying is that, for example if someone is enrolled with an effective date of 12/1/14, they would receive 1/12 of the full commission amount and then for 2015, they would only receive 1/12 of the renewal. If you study the chart closely in the email they sent out, this seems to be what they are saying. Basically boils down to not enrolling any t-65 or SEPs in the last quarter of the calendar year or you will be making chump change .....

 

[unic.consulting]

I think you are misreading it. What they are saying is in 2014 you will only get the 1/12. Starting in 2015, the plan year will begin January 1st, so you will be paid for the full year.

 

[Midlevel]

Mine was really easy to read, no commissions 1st year, 2nd year or 3rd year. That way I don't have to worry about checking to see if I got my true-ups or renewals. I will always know where I stand, $0 1st month I write and $0 every month thereafter for as long as the client has United Healthcare.

 

[Nikita]

Mine was really easy to read, no commissions 1st year, 2nd year or 3rd year. That way I don't have to worry about checking to see if I got my true-ups or renewals. I will always know where I stand, $0 1st month I write and $0 every month thereafter for as long as the client has United Healthcare.

That statement is true for the plans that UHC has announced as non-commissionable, but otherwise do I detect a touch of sarcasm? I don't blame you, I wouldn't be selling UHC at all except that where I live it is really the only decent MAPD plan available (rural Iowa)

 

[sshafran]

I'd like to hear from others on this but it seems to me that what UHC is saying is that, for example if someone is enrolled with an effective date of 12/1/14, they would receive 1/12 of the full commission amount and then for 2015, they would only receive 1/12 of the renewal. If you study the chart closely in the email they sent out, this seems to be what they are saying. Basically boils down to not enrolling any t-65 or SEPs in the last quarter of the calendar year or you will be making chump change .....

I just called them while waiting for the e-mail back from them.

Complete waste of time.

The person in the commissions department ran through an example with me using this sheet:
http://image.email-uhc.com/lib/fef11c7577630c/m/4/12.20.2013+Calculation+Grid2.pdf

We used the scenario of someone turning 65 in February 2014. She said, "You'll get $366.67." I said, I understand that, but what will happen in 2015 if the member stays on the plan. "Let me place you on hold while I ask," she said.

Back on the line: "Looking at the chart, you'll get the $366.67 divided by 11 - so you'll get renewal of $33.33 starting in January of 2015."

I said "Great - that's not what I expected, but then will it go down to $16.67 in Feb? She said no, it'll stay $33.33."

I told her that that didn't make sense. I said that would be a raise. Starting in Feb of 2015, it should be $16.67.

Placed on hold again. Presumably she is asking someone who knows what they are talking about...but apparently not.

"Your renewal will be $33.33. It doesn't make sense to me either, but they haven't released any more information to us than the chart. "

So, according to the producer helpless desk, we are getting a raise .

I won't hold my breath. I'll wait until the e-mail gets here so we have something in writing from them.

In short, for a February '14 T65 (using the chart's 200/400 numbers), we should get advanced $366.67 - then $33.33 in Jan 2015, then down to $16.67 starting in February '15 for the rest of eternity.

 

[Nikita]

In short, for a February '14 T65 (using the chart's 200/400 numbers), we should get advanced $366.67 - then $33.33 in Jan 2015, then down to $16.67 starting in February '15 for the rest of eternity.

SShafran, can you please redo your example but using an initial effective date of 12/1/14? I am very concerned about commissions for t-65s that enroll in the last quarter of the year...

 

[sshafran]

In short, for a February '14 T65 (using the chart's 200/400 numbers), we should get advanced $366.67 - then $33.33 in Jan 2015, then down to $16.67 starting in February '15 for the rest of eternity.

SShafran, can you please redo your example but using an initial effective date of 12/1/14? I am very concerned about commissions for t-65s that enroll in the last quarter of the year...

Ultimately, if you write a 12/1/14 T65, UHC should "advance" you all of 2014 - which is $33.33.

Then, in January 2015, then should pay you monthly 33.33 thru November '15 - at which point it should drop to $16.67 for December 2015 and beyond.

This is what should happen if they are simply changing how they pay, but not how much they pay. What I'm concerned about them doing is "Advancing" $33.33 in Dec 2014, and then paying only $16.67 starting in January 2015. That would be a big loss on the T65 new to medicare business.

 

[unic.consulting]

In short, for a February '14 T65 (using the chart's 200/400 numbers), we should get advanced $366.67 - then $33.33 in Jan 2015, then down to $16.67 starting in February '15 for the rest of eternity.

SShafran, can you please redo your example but using an initial effective date of 12/1/14? I am very concerned about commissions for t-65s that enroll in the last quarter of the year...

Nikita,

It seems to me that you would receive $33.33 in Dec 2014, then $33.33 each month in 2015 until December when it would drop to $16.67

 

[WCMason]

Sounds like the plan is neither 12 month advance nor as earned, but advanced for the remainder of the CY, and perhaps causing a lot of hand wringing and doomsday predictions of the future based on not very much of a change.

 

[bpenn9]

Nikita,

It seems to me that you would receive $33.33 in Dec 2014, then $33.33 each month in 2015 until December when it would drop to $16.67

That is what would make sense and fine by me. Shot an email to Berwick but have not heard from them just yet. May be off for the holidays.